CAPITAL WATCH: Recent lending deals November 2016

The UK’s stand-out deal in November was an £800 million financing which will fund Quintain’s residential-led Wembley Park development. The project, located on land surrounding Wembley Stadium, will include 4,850 homes, many of which will be available to rent. The facility is split into a £560 million, five-year revolving senior loan which has been provided by Wells Fargo and US insurer AIG, and £240 million of mezzanine from Canada Pension Plan Investment Board. The loan is secured at the corporate level.

Middle Eastern-backed Apache Capital and Moda Living closed in on an £80 million financing of one of the first significant regional private rented sector schemes in the UK. The project, Angel Gardens, is a residential tower in central Manchester. Germany’s pbb Deutsche Pfandbriefbank was lined up as the lender.

In the UK logistics market, PGIM Real Estate Finance provided £75.6 million of debt to the South Korean consortium which had earlier in the year sealed the UK’s largest-ever logistics investment deal. The consortium, fronted by BNP Paribas Real Estate Investment Management, bought Amazon’s main UK distribution facility in Leicestershire from John Cutts’ Mountpark for £125 million in April.

In continental Europe, TH Real Estate sourced a €300 million refinancing of French and German properties held by the Cityhold Office Partnership, its JV with two Swedish pension funds. The financing, known as ‘Project Bull’ in the market, was provided by ING Real Estate Finance and LBBW for a term of ten years, understood to be priced below 100 basis points.

Berlin Hyp and Helaba provided a €550 million refinancing to German residential property firm BUWOG Group, secured by 18,000 multifamily units. In an indication of how competitive the German market has become, the banks provided the loan at 105 bps, a 60 bps reduction from the last time the portfolio was financed, in 2014.

Also in Germany, Deutsche Hypo provided €215 million to Hamburg-based property company Robert Vogel GmbH & Co, to refinance a residential and office portfolio in the city. Perhaps the portfolio’s most notable asset is the ‘Dockland’ office building at the city’s harbour, which was designed in the shape of a large ship.

Click here to view a table of recent lending deals in November 2016.